Eircom owner Valentia Telecommunications - the owner of Eircom - has extended the deadline for bondholders to signal support for the company's planned flotation.
The holders of the company's more than €1 billion in bonds will have until February 13th to approve a resumption of dividend payments, which are currently suspended under the terms of the bonds issued last August.
The ability to pay dividends is a prerequisite for a successful flotation of the company. Valentia only needs the approval of a simple majority of its bondholders and is offering them financial incentives of up to €3.75 per €1,000 worth of bonds held to agree to change the terms governing the debt.
A decision on whether to proceed with a flotation is expected to be formally made shortly after the February deadline.
Elan files new drug application
Elan has positioned itself for entry into the multi-billion dollar market for rheumatoid arthritis medicines by filing a new drug application to the US Food and Drug Administration (FDA) for the use of its Antegren drug as a treatment for the disease.
Elan said yesterday that it hoped to begin clinical trials on Antegren for rheumatoid arthritis in the first half of this year.
Analysts at NCB said the latest news was positive but reduced their rating on the stock to "hold" on the basis that its current price reflects sum-of-the-parts valuations as things stand.
Shares in Elan closed at €6.80 in Dublin last night, down 10 cents on relatively low volume.
Cisco posts lower quarterly profit
Cisco Systems, the world's largest maker of equipment that directs internet traffic, posted a lower quarterly profit yesterday after an accounting change, although sales rose as corporate customers opened their wallets to spend more on technology.
The company reported a net profit in its fiscal second quarter of $724 million, or 10 cents a share, compared with $991 million, or 14 cents a share, in the year-ago quarter. - (Reuters)
AIB branch under investigation
An AIB branch in Cork is at the centre of a Garda fraud investigation, involving up to €2 million, it emerged yesterday, writes Barry O'Halloran.
Garda fraud officers are investigating allegations that a former AIB employee cheated a number of investors out of monies estimated at between €1 million and €2 million.
They have been working on the case for the last 18 months. This week gardaí arrested the man involved, and questioned him for 12 hours before releasing him without charge. Documents were also seized and taken from his home.
The man involved left the bank some years ago. Part of the alleged fraud took place while he was still an AIB employee, while other incidents took place after he had left and was acting as an investment adviser.
According to reports, the fraud office began the investigation after an elderly investor reported that €63,000 of her's was missing.
Upbeat forecast from Whirlpool
Whirlpool, the largest US white goods company, yesterday delivered an upbeat forecast for the coming year as it reported solid fourth-quarter earnings.
Whirlpool said improved sales and productivity in its North American and European operations helped boost profit in the fourth quarter.The company earned $125 million, or $1.76 a share, for the quarter, compared with a net loss of $29 million, or 42 cents a share, in the same period a year ago. The 2002 loss included charges of $2.06 a share.
